80.2K

Verified Solution

Link Copied!

please answer the questions for 2016-2019. Thank you!

2-12 (book/static) Question Help See Table 2.5 m showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco's cows and expenses had been the same fraction of revenues in 2016-2019 as they were in 2015. What would Mydeco's EPS have been each year in this case? Calculate the new EPS for 2016-2019 bow Found dollar amounts and number of shares to one decimal place. Round percentage amount and the EPS to two decimal places) 2016 2017 3638 Reveremon) Net Pro Margin New Net Income miliona) Shares O landing Imion) New EPS 162 5.0 0.29 $ Data Table 2015-2019 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; in $ millions) Income Statement 2015 2016 2017 2018 Revenue 404. 3 363. 8 424.6 510. 7 Cost of Goods Sold (188.3) (173.8) (206.2) (246.8) Gross Profit 216. 0 190.0 218.4 263.9 Sales and Marketing (66.7) (66.4) (82.8) (102.1) Administration (60.6) (59.1) (59.4) (66.4) Depreciation & Amortization (27.3 (27.0) (34.3) (38.4) EBIT 61.4 37.5 41.9 57.0 Interest Income (Expense) (33.7) (32.9) (32.2) (37.4) Pretax Income 27.7 9.7 19.6 Income Tax (9.7) (3.4) (6.9) Net Income 18.0 6.3 12.7 Shares Outstanding (millions) 55 55 Earnings per Share $0.33 $0.05 $0.11 $0.23 Balance Sheet 2015 2016 2018 Assets Cash 48.8 68.9 86.3 77.5 Accounts Receivable 88.6 69.8 69.8 76.9 Inventory 33.7 30.9 28.4 31.7 Total Current Assets 171.1 169.6 184.5 186.1 Net Property, Plant & Equipment 245.3 243.3 309.0 345.6 2019 604.1 (293.4) 310.7 (120.8) (78.5) (38.6) 72.8 (39.4) 33.4 (11.7) 21.7 55 $0.39 2019 55 85.0 86.1 35.3 206.4 347.0 Print Done i Data Table 2015 2016 2017 2018 2019 48.8 88.6 33.7 171.1 245.3 361.7 778.1 68.9 69.8 30.9 169.6 243.3 361.7 774.6 86.3 69.8 28.4 184.5 309.0 361.7 855.2 77.5 76.9 31.7 186.1 345.6 361.7 893.4 85.0 86.1 35.3 206.4 347.0 361.7 915.1 31.7 Balance Sheet Assets Cash Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equipment Goodwill & Intangibles Total Assets Liabilities & Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities Long-Term Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity Statement of Cash Flows Net Income Depreciation & Amortization Change in Accounts Receivable Change in Inventory 9.7 18.7 6.7 25.4 500.0 525.4 252.7 778.1 17.9 6.4 24.3 500.0 524.3 250.3 774.6 22.0 7.0 29.0 575.0 604.0 251.2 855.2 26.8 8.1 34.9 600.0 634.9 258.5 893.4 41.4 600.0 641.4 273.7 915.1 2015 2016 2017 3.0 6.3 18.0 27.3 27.0 18.8 34.3 2018 12.7 38.4 (7.1) (3.3) 2019 21.7 38.6 (9.2) (3.6) 3.9 0.0 (2.9) 2.8 click Print Done out 18.7 6.7 25.4 17.9 6.4 24.3 500.0 524.3 250.3 774.6 500.0 525.4 252.7 778.1 22.0 7.0 29.0 575.0 604.0 251 2 855.2 26.8 8.1 34.9 600.0 634.9 258.5 893.4 31.7 9.7 41.4 600.0 641.4 273.7 915.1 45 2015 2016 2017 6.3 34.3 Accounts Payable Accrued Compensation Total Current Liabilities Long-Term Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity Statement of Cash Flows Net Income Depreciation & Amortization Change in Accounts Receivable Change in Inventory Change in Pay. & Accrued Comp. Cash from Operations Capital Expenditures Cash from Investing Activ. Dividends Paid Sale (or Purchase) of Stock Debt Issuance (Pay Down) Cash from Financing Activ. Change in Cash Mydeco Stock Price 3.9 27.0 18.8 2.8 0.0 (2.9) 2.5 2018 12.7 38.4 (7.1) (3.3) 5.9 46.6 (75.0) (750) (5.4) 2019 21.7 38.6 (9.2) (3.6) 6.5 54.0 (40.0) (40.0) (6.5) 2.2 (1.1) 48.5 (25.0) (25.0) (5.4) 50.5 (25.0) (25.0) (5.4) 47.8 (100.0) (100.0) (5.4) (5.4) 18.1 $7.92 (5.4) 20.1 $3.30 75.0 69.6 17.4 $5.25 25.0 19.6 (8.8) $8.71 7.5 $10.89 in click Print Done

Answer & Explanation Solved by verified expert

See Answer